Start Prime Minister Youth Business Loan

Tuesday, December 03, 20130
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Youth Business Loans - Introduction

Prime
Minister’s ‘Small Business Loans Scheme’, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to
provide subsidised financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially
through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL).

Small
business loans with tenure up to 7 years, and a debt : equity of 90 : 10 will
be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh,
Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir
and Federally Administered Tribal Areas (FATA).

SMEDA
has been tasked with an advisory role in the implementation of PM’s scheme by
providing fifty three (53) updated pre-feasibilities for referencing by SME
beneficiaries and participating banks to optimally utilize their financial
resources.

Guidelines
for Prospective Loan Applicants

SMEDA has taken the initiative of developing
pre-feasibility studies in fifteen sectors, and as per directions of the Prime
Minister, has made them available to new start–up SMEs, through the SMEDA
website, for the promotion of an entrepreneurial culture in Pakistan. To date,
our website has recorded more than 250,000 downloads of the published
pre-feasibility reports.

These prefeasibility studies provide a general
understanding of the proposed business, and are structured like a business
plan. However, to assist the prospective entrepreneurs / loan applicants, SMEDA
will provide a template for business plan preparation and requisite guidelines
for the loan applicants.